suppose steel handles-manufactured cast iron skillets. one model is a 10-inch skillet that sells for $30. steel handles projects sales of 725 10 inch skillets per month. the production costs are $7 per skillet for direct materials, $3 per skillet for direct labor, and $5 per skillet for manufacturing overhead. Steel Handles has 60 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 35% of the next months sales. Selling and administrative expenses for this product line are $1,400 per month. Steel Handles has budgeted cost of goods sold of $10,875 for July.

Compute the budgeted gross profit for July.

A) $9,075

B) $10,875

C) $16,695

D) $18,495

Please show work of how answere is calculated.